S&P 500 Index Future (4346) | At the top of the week I discussed the falling wedge technical formation which considered a bullish setup. On Tuesday we saw the lower boundary of this formation being tested with a subsequent two-day rallying that has pushed the index toward the upper boundary which also serves as the downward trend line resistance. The two-day candle structure has shown a vast improvement with wide ranges being developed over the two sessions. As also highlighted on Monday was the horizontal trend line support which, for a brief period was breached but has been reclaimed. For now, we consider this a false breakdown (a positive development). The rebound has also come off the 200-period linear regression channel. Key short term resistance zone: 4400-4425 (around the declining 50-day EMA).
